Earthquake insurance is cheap

Earthquake insurance is cheap

If you live in Southern California, you know all about “the big one” — a major earthquake that is going to strike along the San Andreas Fault sooner or later. Aside from “the big one”, there is a huge risk that you’ll experience a seismic event in the future if you haven’t already experienced one. 

There are more than 500 known faults in the state of California that are active, and scientists are still discovering new ones. So, the takeaway from this is that earthquakes are going to happen, but it’s difficult to predict where and when. What you do know, however, is that a large earthquake can be devastating, resulting in billions of dollars in damage to homes and businesses.

If your home or business is seriously damaged or destroyed in an earthquake, there’s a good chance that you’re not going to be able to afford the costs of rebuilding and replacing all of your belongings. Earthquake insurance for residential and business properties can cover those costs.

Many people are under the impression that their homeowners, renters, or condominium insurance policies cover damages that arise from natural disasters such as earthquakes. They don’t. If you want earthquake insurance, you have to buy a separate policy or see if you can have it added to your current policy by endorsement.

Granted, earthquake insurance isn’t always cheap, but it’s a great value when you consider what your out-of-pocket expenses will be if your home or business sustains serious damage or is destroyed. If you still have a mortgage to pay off, the mortgage company is still going to expect to get paid even if your home is destroyed. 

When you compare it to what you could owe

With earthquake insurance, if your home is damaged by an earthquake, you’ll be covered for repairs or rebuilding. If your home becomes uninhabitable due to earthquake damage, you may get additional living expenses, making it possible for you to live someplace else while your home is rebuilt. 

Your policy will also pay for personal belongings such as clothes and furniture. Optional coverage may include building code upgrades, land restoration, and emergency repairs. And, depending on your policy, coverage for other structures on your property and debris removal may be standard.

While it’s true that, compared to homeowners insurance, earthquake insurance policies have higher deductibles — between 10% and 20% of your dwelling coverage limit — consider the fact that, without earthquake, you could end up paying hundreds of thousands of dollars out of pocket vs only being responsible for the deductible.

If you’re making mortgage payments on your house, you’ll be making those payments on a home that you can no longer live in. With earthquake insurance, you’ll at least have someplace to live while you’re paying your mortgage.

If you look at all the practical reasons for having earthquake insurance plus the peace of mind it can bring you, earthquake insurance is cheap!

Get your annual policy started

Independent insurance broker Daniel Fraisse does all of the legwork when it comes to researching and comparison shopping for earthquake insurance for Los Angeles homeowners. Dan Fraisse will work hard to get you lots of coverage for a small payment that’s more budget friendly.